If a company has excess capacity, which of the following is a sensible bidding strategy? Allocate common fixed costs to individual jobs before preparing the bid. Set a price to cover all costs. Downplay the potential impact of competitors. Base the bid solely on direct labor hours. Base the bid on the incremental costs incurred because the job will contribute toward the company's profit.

scenario: hawaii and south carolina are trading partners. hawaii has an absolute advantage in the production of both coffee and tea. the opportunity cost of producing 1 pound of tea in hawaii is 2 pounds of coffee, and the opportunity cost of producing 1 pound of tea in south carolina is 1/3 pound of coffee. which of the following statements is true? a. south carolina should specialize in the production of both tea and coffee. b. hawaii should specialize in the production of tea, whereas south carolina should specialize in the production of coffee. c. hawaii should specialize in the production of coffee, whereas south carolina should specialize in the production of tea. d. hawaii should specialize in the production of both tea and coffee.